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The City of Los Angeles has chosen a developer for a wholesale produce market and additional manufacturing space on a site where a controversial state prison was once proposed. The city chose Richard Meruelo to develop the 20-acre parcel near Washington Boulevard and Santa Fe Avenue near L.A.’s Eastside neighborhood.

In the mid-1980s, activists fought a proposal from Gov. George Deukmejian to build a high-rise prison on the site. Residents of the heavily Latino district said the state was d...

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